Enfusion Associate Interview Questions and Answers

Q1. Tell me about yourself and previous work experience and above hedge fund
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Q1. Master feeder structure
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Q1. Reconciliation process related
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Aptitude test

Q1. Derivatives related questions
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Q1. General questions, family background
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Q1. What are Hedge Funds?
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Hedge funds are alternative investment vehicles that use pooled funds from accredited investors to generate high returns.
• Hedge funds are managed by professional fund managers.

• They use a variety of investment strategies, including leveraging, short-selling, and derivatives trading.

• Hedge funds are only available to accredited investors due to their high-risk nature.

• They are not regulated by the SEC like mutual funds.

• Exam...read more
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Q2. What are OTC Derivatives?
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OTC Derivatives are privately negotiated financial contracts between two parties, not traded on an exchange.
• OTC stands for Over-The-Counter

• OTC Derivatives are customized contracts between two parties

• They are not traded on an exchange

• They are used for hedging, speculation, and arbitrage

• Examples include swaps, options, and forwards
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Q3. What happens when we short securities?
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Shorting securities involves borrowing and selling securities in the hopes of buying them back at a lower price.
• Shorting is a bet that the price of a security will decrease.

• Shorting involves borrowing securities from a broker and selling them on the market.

• If the price of the security decreases, the short seller can buy it back at a lower price and return it to the broker, making a profit.

• If the price of the security i...read more
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Q4. What happens when we short put?
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Shorting a put option involves selling a put option with the expectation that the price of the underlying asset will rise.
• Shorting a put option is a bearish strategy

• The seller of the put option is obligated to buy the underlying asset at the strike price if the buyer decides to exercise the option

• Shorting a put option can be profitable if the price of the underlying asset rises or remains stable

• However, if the price of...read more
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Q5. What are CDS? Why should any company underwrite CDS?
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CDS are Credit Default Swaps, a type of financial derivative used to transfer credit risk from one party to another.
• CDS are contracts between two parties where one party agrees to compensate the other in case of a credit event, such as default or bankruptcy, of a third party.

• Companies underwrite CDS to hedge against the risk of default by a borrower or counterparty, or to speculate on the creditworthiness of a particul...read more
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Q6. What is NAV? How to calculate NAV?
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NAV stands for Net Asset Value. It is the value of a mutual fund's assets minus its liabilities.
• NAV is calculated by dividing the total value of a mutual fund's assets by the number of outstanding shares.

• NAV is calculated at the end of each trading day.

• NAV is used to determine the price at which investors can buy or sell shares in a mutual fund.

• NAV can be affected by changes in the value of the underlying assets, as we...read more
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Q1. Tell me about yourself, and my internship related questions
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Q1. Mutual funds and hedge fund related questions
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